Windsor Landscaping began construction of a new plant on Dec

Windsor Landscaping began construction of a new plant on December 1, 2017. On this date, the company purchased a parcel of land for $145,200 in cash. In addition, it paid $2,640 in surveying costs and $4,080 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,360, with $720 being received from the sale of materials.

Architectural plans were also formalized on December 1, 2017, when the architect was paid $33,600. The necessary building permits costing $3,360 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2018 as follows.

December 31, 2017 December 31, 2018
(a) Balance in Land Account

\"Entry

\"Entry

(b) Balance in Building

\"Entry

\"Entry

(c) Balance in Interest Expense

Solution

Working:

Dec.31, Dec.31,
2017 2018
Balance in Land account 154560 154560
Balance in building account 0 716964
Balance in interest expense 0
Windsor Landscaping began construction of a new plant on December 1, 2017. On this date, the company purchased a parcel of land for $145,200 in cash. In additio

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